In September 2023, Catalyst Fund achieved its first close, securing $8.6 million out of the targeted $40 million for investments in African climate startups. Notable investors include FSD Africa, FSDAi, Cisco Foundation, USAID Prosper Africa, and Andrew Bredenkamp.
Established in 2016 and overseen by BFA Global, Catalyst Fund facilitates access to capital, talent, and market opportunities for startups. This round signifies the fund’s second wave of investments in African startups addressing climate change challenges.
In January 2023, Catalyst Fund allocated $2 million to ten startups focusing on solutions for Africa’s climate-vulnerable communities. Subsequently, this new investment extends its portfolio to 19 companies across eight markets: Kenya, Egypt, Morocco, Nigeria, Senegal, South Africa, Tanzania, and Uganda. The Catalyst Fund team will provide venture-building support to these startups, integrating them as extensions of their own teams. These startups are tackling climate-related challenges in agriculture, healthcare, energy access, and waste management.
A 2023 survey revealed that over 110 million people in Africa were directly impacted by weather, climate, and water-related hazards in 2022, resulting in over $8.5 billion worth of economic damages. Commenting on the investment, Maelis Carraro, Managing Partner at Catalyst Fund, acknowledged that the models employed by the startups “directly empower farmers, healthcare providers, waste workers, and small and medium businesses to adapt to the changes brought by climate change and drive climate-positive economic growth.”
Furthermore, Maxime Bayen, Operating Partner at Catalyst Fund, stated that “with these new investments, [Catalyst Fund] aims to continue diversifying its portfolio in models, climate adaptation sectors, and geographies.”
In 2022, Catalyst Fund raised $3.5 million from FSD Africa to expand its presence and scale in Africa. Thus, it aimed to support 40 pre-seed impact ventures in Africa that are building solutions for underserved climate-vulnerable communities and provide venture-building support.
Source: Techpoint